LXI Reit Forward funds Lidl foodstore and B&M, in East Fife
LXI Reit has forward funded a pre-let development at Cowdenbeath, East Fife, for £8.5 m reflecting a 6.0% net initial yield. The project consists of a 19,310-sq ft Lidl foodstore and a 20,000-sq ft B&M discount store.
The foodstore has been fully pre-let to Lidl on a 25-year lease with a tenant break right at year 15, with five yearly rent reviews index-linked to the Consumer Prices Index (capped at 3% pa and collared at 1% pa compound).
The other unit has been fully pre-let to B&M Retail on an unbroken 15-year lease from completion of the building works, with five yearly upward-only open-market rent reviews.
Planning consent has been granted, the agreements for lease have exchanged and LXI will receive an income from the developer during the construction period. Building works are due to complete in Q3 2019.
